Butte semi-weekly miner. [volume] (Butte, Mont.) 1886-1890, 1887-05-21

The ct. Louis Mining News Of the 14th
inst, in ~ article headed "a Mining Son.
~sation," utters q vail over the resurrec-
ton Of q law Of Missouri which Affects all
companies in that State. In regard to it
that journal says that within the last two
weeks there was brought to the attention
of the large holders Of stock in the Granite
Mountain and other prosperous mining
companies q decision Of Judge Black OF
the Supreme Court oil Missouri on q law
which may seriously affect st. Louis as q
mining center. The decision rendered was
in a suit brought by the city Of St. Joseph
against Nathan p. Ogden to collect taxes
on stock in q Texas cattle company
owned by Ogden. It is claimed by Ogden
that the cattle company had paid taxes
IN all it's assets in Texas, and that the
owners of stock could not be taxed by
the State of Missouri on the value OF
their stock, The city Of st. Joseph was
successful in the lower courts, and, on an
appeal by Ogden to the State Supreme
Court, the judgment was affirmed. Judge
Black rendered the opinion January 81,
1877.
In it he said: ut is unqueationably with
in the power of the Legislature to make
shares Of stock taxable to the owner at
his place of residence, and this we are of
the opinion this statute was designed to do
and does do. Other wise n of these cor.
porations may be located at and all the
stockholders reside in the city and have
the protection Of the municipal government
and yet pay no share of the public burden
on the aggregated wealth thus invested be-
cause the property of the company is
without the jurisdiction OF the city. The
fact that the property of the corporation
is taxed in the State of Texas is no onse- i
quence if the law requires the shares to be
assessed and taxed here at the residence
of the owner"
As the time for paying taxes in this State
the attention of some of the
stock owners in this city was called
to the law and to Judge Blacks decision.
One OF them consulted legal authority and
was advised that the law did not apply to
St. Louis, which was a city of the first
This is a mooted point, however. Public
attention was called to the law this week
by the transfer of all but fifty shares of the
stock of the Granite Mountain Mining Com
pany owned by Moses Rumsey-over 3O,-
900 shares-to E. G. s. White, OF Detroit,
mis- brother-in-law. This was claimed to be
BONA fde transfer and sale, but some ex-
pressed the belief that the action was taken
to avoid taxation. At the present rate of
and quoting the stock at its nor
market value early this week at $50,
Rumsey's tax on his stock would be
about $4,000 year. Mr.. Rumsey him
is out Of the city, and his brother. the
President of the Granite Mountain Com
pany. is quoted as saying that the transfer
is the result OF a sale, but no particulars of
the sale can be learned.
II the law is applicable to the city of St.
Louis and an effort is made to enforce it, it
will result in banishing from the city all the
bonanza miners and probably the holders
Of stock in all large corporations. One OF
the big Granite Mountain stockholders said
Yesterday: 1.-The enforcement of the law
will take $685. 600 Of the 5000. 600 Granite
Mountain monthly dividends away from
ibis city. It will take away the Bi-metalic
and all the other paying companies. I do
think it can be enforced"
While TAG MINER would be pleased to
zee st. Louis investors in Montana mining
properties relieved from unjust taxation,
t cannot see how shares of stock OF such
properties held anywhere can escape taxa.
Jon. In this Territory the mine itself is
lot taxed, the improvements thereon and
The surface ground alone being assessable.
IN addition the net output of the mine is
to taxation. Aside from these
10 taxes are levied upon mining properties.
holders Of stock in corporations,
mining or otherwise, are compelled to list
uch at Its market valne, and it is assessed
accordingly. Such stock is property repre-
a certain amount OF money. II,
However. a mine itself were taxable the
ase would be quite different, for the tax
ng OF the stock OF such mine would come
lnder the head of dual taxation, and just
ause OF complaint would exist. As the
natter stands it would be to the interest
# the owners to plant their stock where
he rate OF taxation is the lowest, and
'robably Montana offers as favorable field
or such planting as any portion OF the
Vest.